Please complete all tables and show all work. Thanks

1 1. Calculate expected value of rates of return, variances of ROR, standard deviations of ROR, and coefficients of variation (CY) for activities A and B. Use Excel's built-in functions 2. Estimate the covariance for the diversified portfolio C = .5A..5B (i.e., value of portfolio split evenly between the two activities). Make the calculations in the cells in the 3 columns 2 shaded gra and label the columns used to make these calculations. 3 3. Finally, calculate the standard deviation and coefficient of variation for the diversified 4 4. Discuss how diversification reduced risk by comparing the pertinent statistics for A.B. 5 6 Calculate Covarianoel 7 Year A ROR BROR 1 17.2 11.4 9 2 5.9 6.4 10 3 15.6 4.4 11 4 20.3 3.7 12 5 10.4 11.1 13 6 14.3 11.2 14 7 12.5 7.6 15 8 19.7 7.4 16 9 19.2 5.9 17 10 4.4 18 11 9.0 7.7 19 12 15.7 4.4 20 13 14.8 7.1 21 14 21.2 8.8 22 15 18.2 23 E(ROR) 24 Variance (ROR) Covariance A&B = 25 Std Dev(ROR) 26 E(C=.5A..5B) = 27 Var(C-.5A..5B) 28 Std Dev(C=.5A..5B) = 29 CY (C-.5A..5B) = 30 31 Show diversification reduced risk by comparing the pertinent statistics for A, B, and the diversified portflio, C. 32 18.5 an INSEANANARE NOON 7.2 CY 34 35 36 37 38 39 Additional rorksheets follor. 40